Price perceptions impact holiday food spending

A large majority of consumers have a lingering perception that grocery prices are higher than they were a year ago, which is leading them to seek more bargains this holiday season, according to the 2023 Holiday Expectations report from Daymon.

The report found that for the 88% of shoppers who perceive food prices as being higher than last year, 91% will be changing their purchasing behaviors in some way. This represents an opportunity for retailers to promote their private brand offerings, the report suggested.

Daymon, a global private brand agency, said more 75% of consumers surveyed said they are not willing to buy smaller quantities of items, and instead are buying private brands (94%), seeking deals (66%), shopping across more stores (44%), and comparing prices online (31%). More than four in five shoppers — 82% — said they are not loyal to national brands for holiday recipes, amplifying the opportunities for private brands, the report concluded.

“With consumers looking to price compare and shop across more stores in search of deals, retailers should align strategies throughout the path to purchase with in-store and online marketing initiatives communicating both savings and the overall value private brands provide across key holiday categories,” the report concluded.

Shoppers are also seeking to economize on their holiday entrees, with 20% reporting that they plan to buy a more affordable meat this holiday season, compared with 10% who said they expect to buy a more premium meat.

Many consumers are also prioritizing convenience when it comes to ready-made meal components for the holidays, the report found. The most popular options are ready-to-eat desserts (36%), appetizers and sides (25%), prepared entrees (21%), and store-made gravy, sauce, or dips (21%).

Among the report’s other findings: